Best Saving Scheme for 16 Year Old

Sue_Kidd

My daughter is now 16 and have been told to take her money out of the Liquid Gold account or pay tax on it. Can you suggest where I can get the best interest for the account without her being able to access it. If I have to put it in my name thats not a problem (or is it)?? Also the SAVE4IT 10% interest ends in July(12 month regular saver) for her so I will also have to transfer this. Can anyone advise. Thanks

Savvy_Sue

Is your daughter earning more than £5000 per year? Because if she's not she can still continue to receive interest gross: she may need to fill in a new form.

My sons have all had joint accounts with me until they were 16, but then the building society sends a form which turns it into a sole account for them, they also have to do a new form to say they are entitled to get interest gross.

If the money goes into your name, then you're the one potentially liable to pay tax on it, if you're a tax payer.

And welcome to the boards.

lizziebabe

Agree with Savvy Sue, your daughter has the normal tax allowance but has to fill in the form. Look at Martin's advice of new ISA/savings scheme coming out. The Post Office ISA has a good rate of interest but you have to put at least £1000 in at first. However if she saves with an ISA she will never have to pay tax on the interest. Look at what Martin says about them. Good luck!